Enoc may restart condensate splitter

Upbeat about the improvement in refining margins, Emirates National Oil Company (Enoc) is considering restarting one of the two trains of its 120,000 bpd condensate splitter. The splitter train with 60,000 bpd capacity was closed temporarily due to the lack of feedstock at competitive prices.

CEO Hussain Sultan told Gulf News: "Enoc is positive about the market and gradually expanding its capacity. We may restart our closed splitter soon as the market looks positive."

Enoc's condensate splitter with 120,000 bpd capacity has two trains with 60,000 bpd capacity each. One of the two trains which was closed temporarily is expected to go on stream again as Enoc believes condensate feedstock is becoming available in enough quantities and at an affordable price, which makes the splitter economically viable.

With squeezed refining margins and high crude prices, many refiners and condensate splitter operators such as Enoc found it difficult to survive in the tight market for some time.

Some of the refiners in the Middle East had also postponed commissioning new capacity because the market was not right and refiners were incurring losses.

Some like the Fujairah refinery shut down operations temporarily in late March and early April this year and are now planning to restart.

To fulfil their commitment towards the buyers during the difficult times, refiners had to source products from other producers in the Far Eastern markets such as Singapore.

Enoc closed one of the trains late last year and restarted it in the middle of this year.

However, in the face of deteriorating market conditions, it slowed down production again during the last few months and virtually closed one of the two splitters.

Enoc's splitter trains normally use Gulf condensates like that from Iran's South Pars oil field. Due to the higher level of volatility many refiners have opted for stockpiling condensate feedstock.

Enoc's splitter processes condensate feedstock from the Gulf region into 34,000 barrels per day (bpd) of kerosene, 11,500 bpd of diesel, 5,000 bpd of liquefied petro-leum gas (LPG) and 33,000 bpd of naphtha.

The condensate splitter refinery is owned and operated by Enoc's wholly-owned subsidiary, Enoc Processing Company.